March 3, 2021 | less than a minute read

U.K. Opens Door to SPACs, Big Tech IPOs to Compete With New York

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Joel I. Papernik

Member

Get in touch

Joel I. Papernik

Member

The expected rule changes at the London Stock Exchange which would allow SPAC’s (special purpose acquisition corporations) to list on such exchange should facilitate and encourage the development of overseas SPAC Teams and overseas sponsors as well as encourage overseas companies as a way of going public. No doubt, companies in many different industries will be encouraged to merge with SPACS. In addition to creating more competition for appropriate targets, I suspect that our regulators and exchanges will be discouraged from further regulation or reigning in of SPACS in this country. I expect the already high level of SPAC activity to increase. We are always happy to discuss the advantages and disadvantages and other aspects of SPACS with all of you.

Changes would... place London on more equal footing with New York to compete for the surge in special-purpose acquisition companies, or SPACs, a popular vehicle that short-circuits the traditional initial-public-oﬀering process. Regarding SPACs, the proposed changes could let investors opt out of deals if they don’t like the acquisition the SPAC managers choose and would let them trade shares immediately after a deal’s announcement, bringing London in line with the U.S. market.